The Canadian Stock Exchange ($TSX) had not made new 52-week highs for a couple of years. Finally, in August we started to hit new 52-week highs. Our last 52-week high was in September 2014.
But one of the most important parts of this rally is that markets around the world are breaking trend lines, or new 52 week highs, or all time highs.
For example, Germany ($DAX) broke through a long downtrend this week. That is an important chart regarding Europe as Germany represents Europe's strongest economy. It also made the 2016 highs this week.
For Hong Kong ($HSI), they broke through to new 2016 highs.
Continuing to look around, Shanghai ($SSEC) is trying to follow through as well. A break above the trend line just happened this week. A break above 3097 would be a fresh move above horizontal resistance.
However, one of the charts I like to keep track of as a "Commodity Country' like Canada is Australia ($AORD). There are still mounting fresh 2016 highs, but they have not quite broken through to new 52-week highs. The chart still looks great.
The bottom line is that a lot of the major markets in the world are breaking out above technical resistance levels. A global bull market is a good tailwind.
I will be hosting a special webinar with Martin Pring on August 23rd from Martin's office in Florida. Our plan is to have an open debate about some of the more common charts for investors. I hope you can join us. The link should be up on the StockCharts home page sometime this week.
Good trading,
Greg Schnell, CMT, MFTA.
